Rising soybean prices
SOYBEAN prices have been rather steady since 2018, something which is unprecedented. The crop was trading closer to US$1,800 levels in 2012-2013 before gradually sliding down to US$850 levels since 2018, indicating a fair level of volatility
In the last few weeks, soybean prices are active again. They surpassed the US$1,000 levels and are now close to a three-year high. The rise has promoted some to comment that soybean, which is the torch-bearer of the oil seed market, is on a bullish run.Whether the crop goes back to its dizzying heights that were seen in 2012 and 2013 will depend on China and its unending thirst for commodities.
It has been reported that production has declined in soybean producing countries while demand has picked up in China. The combination has resulted in higher prices for soybean.
Generally when soybean prices are on the rise, it will benefit the crude palm oil producers. The price for Malaysia’s golden crop tends to increase when soybean prices are on the up-tick.
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